Gold Market Sees Unprecedented Growth in Korea

The Korea Exchange (KRX) recently announced a staggering 74% increase in gold market trading volume by the end of last month compared to the previous year. Individual investors have been the driving force behind this surge, accounting for the largest share of transactions.

The price of gold on the KRX has reached record highs, fueled by significant exchange rate fluctuations and a growing demand for safe-haven assets. The price per gram has risen by 47%, from 86,940 won ($63.40) at the beginning of the year to 127,590 won by the end of last month.

Average daily trading volume in October hit 23.2 billion won, marking a 344% increase from the start of the year. The daily average trading volume also saw a 21% rise, averaging 187 kilograms.

By investor type, individuals made up 43% of the market, followed by institutions at 37% and physical asset businesses at 19%. The number of gold trading accounts opened by individual investors at the 13 securities companies that are members of the gold market surpassed 1.2 million as of the end of June.

The KRX attributes the sustained rise in gold prices to various uncertainties in the global economy, including heightened geopolitical risks and a potential rate cut by the U.S. Federal Reserve. With rising geopolitical tensions and the recent Fed interest rate cut cycle, investment inflows into the gold market have increased as a hedge against a weakening U.S. dollar.

A KRX representative stated, "With the continued preference for safe-haven assets, participation in the KRX gold market has steadily increased, reinforcing gold's status as a major investment option. We are committed to ensuring transparency and fairness in gold trading."